The government has rejected the demand of local car-makers who sought imposition of a ban on the import of used cars in a bid to facilitate the consumers.
“Local car-makers want a ban on the import of used cars to strengthen their monopoly but the government has rejected it,” an official said, adding the manufacturers had some reservations about the upcoming auto policy. The Privatisation Commission chairman has been tasked with addressing their concerns.
According to officials, the government will also introduce a tariff protection plan for the new entrants in the automobile manufacturing sector in the auto policy to break the monopoly of existing players.
The Economic Coordination Committee, in a meeting held on October 2, 2013, suggested that they may give tariff protection for five to seven years to the new entrants to break the existing monopoly of players who are selling obsolete technology at high prices.
Officials said the government wanted to create an environment of competition by bringing more players into the auto industry, which may result in a decline in vehicle prices.
Prices of sedans in Pakistan were lower compared to India but prices of hatchbacks were higher compared to other countries.
Auto sectors of other countries have many players that increase competition due to which prices are kept low. But in Pakistan, where a few manufacturers are dominant, the cost to the consumer is generally high.
